Low fuel cost, almost flat aircraft rentals, substantial decrease in maintenance charges boost result
Jet Airways on Thursday reported a net profit of Rs 397.16 during the January-March quarter on the back of low fuel cost, almost flat aircraft rentals, substantial decrease in aircraft maintenance charges and higher passengers carried. The airline had reported a net loss of Rs 1,728.99 crore during the same period last year.
During the period, fuel expenses fell 25% at Rs 999 crore against Rs 1,334 crore in the year-ago period. Total income rose 3.6% at Rs 5245.3 crore compared to Rs 5,064 crore year-on-year. Other income in the period was at Rs 206 crore versus Rs 225 crore (y-o-y). The company’s Ebitda stood at Rs 815.9 crore from an Ebitda loss of Rs 340 crore (y-o-y).
Aircraft and engine rentals grew by a meagre 1.46% y-o-y to Rs 544.72 crore during the quarter. Aircraft maintenance charges halved to Rs 345.7 crore.
On the back of significant increase in the total number of passenger carried, net sales increased by 4.66% y-o-y to Rs 4,842.30 crore. The dip in expenses and increase in passenger flown has managed to increase the Ebidtar (earnings before interest, tax, depreciation, amortization and rentals) by 593.31% y-o-y to Rs 1,360.56 compared to Rs 196.24 crore in the corresponding period last year.
This is the fourth consecutive quarter in which Jet has reported a net profit.
Naresh Goyal, chairman, Jet Airways, said, “Jet Airways has been revitalised as a business in the last two years. Our focused efforts have resulted in significant improvement in operational performance leading to record profitability.”
During the entire financial year, net profit stood at Rs 1211.65 crore against a loss of Rs 2097.41 crore in FY 15.
The net sales during the same time increased 6.15% y-o-y to Rs 20,572.22 compared to Rs 19,380.73 crore in the preceding fiscal.
Passengers carried increased 14.8% to 2.58 crore in FY16 from 2.25 crore in FY15. While aircraft utilisation for Boeing 737 fleet continues to increase and reached 13.01 hours in FY16.
Codeshare traffic surged by 31% to 21 lakh passengers carried in FY15 from 16 lakh passengers in FY16. Passengers and revenues delivered by Etihad Airways and its partners rose 86% and 72% respectively in FY16.
James Hogan, vice-chairman, Jet Airways, and president & chief executive officer, Etihad Aviation Group, said, “The return to profitability is a result of the effective partnership between Jet Airways and Etihad Airways. Between the two airlines, we have been able to provide a compelling option of wider combined network and exceptional guest experience for travelers to and from India.”